The German Critique. Narrow rather than comprehensive Uses wrong cost drivers Unwillingness to rely on statistical cost measures and estimates Poor averaging, especially temporal averaging Failure to distinguish between needs of financial reporting and management control.
Jobs should be designed around an objective or outcome instead of a single function;
Functional specialization and sequential execution are inherently inimical to expeditious processing;
Those who use the output of activity should perform the activity and the people who produce information should process it, since they have the greatest need for information and the greatest interest in its accuracy;
Information should be captured once and at the source;
Parallel activities should be coordinated during their performance, not after they are completed;
The people who do the work should be responsible for decision making and control built into job designs
Nobody but the front-line worker adds value,
Front-line workers can perform most functions better than specialists (lean manufacturing),
Every step of the service delivery process should be done perfectly (TQM)
This reduces the need for buffer stocks (JIT) and produces a higher quality end-product.